Growth theory and the growth model perspective: Insights from the supermultiplier

Guilherme Spinato Morlin (), Nikolas Passos () and Riccardo Pariboni

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: Recently, demand-led growth theories reshaped the study of comparative political economy. Since the Baccaro and Pontusson critique of Varieties of Capitalism, a new wave of studies has sought to analyze national economies in terms of their main demand driver of growth. Post-Keynesian authors provided extensions to perfect the fit between demand-led growth theories and comparative political economy. We argue that the Sraffian supermultiplier provides a growth theory compatible with the growth model perspective advanced by Baccaro and Pontusson and has advantages over Kaleckian and New Keynesian approaches. The concept of the autonomous components of demand, which comprise government spending, export, and debt-financed consumption, is already central for the studies of growth models. The supermultiplier provides a theory that coherently understands the relation between the autonomous demand drivers and the other induced components of demand. We demonstrate our arguments by decomposing the growth of four advanced economies: the United States, Germany, Japan, and Sweden. The decomposition shows the importance of separating the autonomous from the induced components and highlights the relevance of public expenditures and exports as growth drivers in advanced economies.

Keywords: Comparative Political Economy; growth models; Sraffian supermultiplier (search for similar items in EconPapers)
JEL-codes: B52 E12 O47 O57 P52 (search for similar items in EconPapers)
Date: 2021-12
New Economics Papers: this item is included in nep-gro, nep-hme, nep-hpe, nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Growth Theory and the Growth Model Perspective: Insights from the Supermultiplier (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:869

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